5 Common Myths About Budgeting that You Can Dispel

• Author: Michael Bordonada
• Posted: 2024-07-18

You likely have read much about budgets, trying to get the advice of experts who can help you get control of your money. However, much of what you read may fall into the category of a personal finance myth. The truth is that budgeting does not have to make you into a robot who does nothing else but save money and has no enjoyment in life. Do not fall victim to the misconceptions about budgeting that may keep you from engaging in this very valuable process.

You Can't Have Fun in Life

Budegting does not mean that you need to cut out everything that you enjoy in your life. It does mean that you cannot spend every penny you have on experiences and need to keep enough money left over for the essentials. However, fun can be a part of your budget. Moreover, you do not need to spend an unlimited amount of money of experiences. You can either budget for fun or find things to do that fit within the amount of money that you have. Vacations are a common line in a family's budgets and millions of families go away each year. Saving a little bit at a time can help you and your family afford to go on vacation every year or two. In fact, having fun is why you budget each and every month.

You Can't Buy What You Want

Again, buying things that you want can be a line item in your budget. Nobody says that you need to cut out everything from your personal finance budget. The point of budgeting is to cut out what you do not need so you can spend money on what your want. You can even splurge every now and then if your build it into your budget. You are not restricted to only the essentials every day and nothing else. People who resist budgeting because they think otherwise are making a mistake.

You Cannot Budget for Unexpected Expenses

You can budget for whatever you want within reason. In fact, you resist budgeting out 100% of your monthly income because there are always unexpected contingenies that end up setting you back. You can have a doctor bill or car repair that pops up without warning that could put you into debt. While you may not be able to put away enough each month to cover the cost of a major expense, what you can do is save some money in your emergency fund. This fund is there for you to draw from when the unexpected happens so you do not have to go into debt after an unplanned expense. Surprises happen, and the key is to be ready for them.

Budetging Is Too Difficult and Takes Too Much Time

This is the thing that intimdates many people about the budgeting process. They think that they must spend hours putting together their budget each month. The truth is that budgeting is much easier than you think. Contrary to the opinion of many experts, you do not have to budget every single expenditure that you make down to the penny. Instead, you can start with broad categories of your general types of spending and follow that outline each month.

Budgeting is also easier than you think because there are many different personal finance programs and apps that can help you with the process. You do not need to sit down with a pencil and paper each month and start from scratch. Instead, you can plug your parameters in to one of these programs and come up with a budget in a matter of minutes.

Budgets Are Too Hard to Track

This is another thing that is made into a misconception by improving technology. There are countless apps that you can install on your smartphone that can track your spending almost on a real-time basis. You can enter in what you spend into your mobile device in a matter of seconds. Then, you can see a running tab of where you are practically on a minute-by-minute basis. Of course, you should not be thinking about your spending every minute of the day, but theoretically, the option is available to you. You do not need to spend hours with a calculator and receipts to get an accurate snapshot of your budgetary situation. Technology has changed to make things much easier for you.